The process to raise the package prices for customers (initially for the new ones, subsequently to the ‘seasoned’ ones) and reshape the pricing list of Brand24 proved a success, resulting in a material increase of MRR (Monthly Recurring Revenues) and ARPU enhancing the forward visibility of revenues and lifting their level (at the same time, however, the growth of users of Brand24 was restrained in volume terms which is confirmed by the Company’s management, albeit they reveal no detailed data). At 2022-end the effects of the upgrades in the pricing list (leaving aside the currency component related to PLN/ USD rate changes and the level of FX rates secured by the Company) seem to have been almost fully reflected in the level of revenues and the need for another ‘boost’ to maintain1 (or r further accelerate) a growth dynamic becomes evident (Brand24 started this year again with the pricing policy upgrade and raised prices for new clients by 24% on average).
The strategic options review2 undertaken recently by the Company seems to be an attempt to address this need; Brand24 intends to analyze a possibility to acquire a partner that would help speed up the Company’s expansion on the foreign markets, especially in US, improving the efficiency of client acquisition and allowing for a ‘leap’ of a scale of the Company’s operations (Brand24 doesn’t need funding3 and it does not look for it either, instead, the Company’s aim is to find a partner with a large client base that is compatible with the Company’s solutions and able to provide synergies and cross-selling opportunities). Brand24 intends to focus on the development of products and tools in the field of processes automation which should result in higher efficiency; the Company has been working on a wider implementation of AI (artificial intelligence) algorithms in optimization of existing and new products. The popularization of AI-related technology is perceived by many, including the Company’s management, as a kind of revolutionary comparable only to the rise of Internet itself; the adaptation to the new reality (offering a chance for faster development, albeit without any certainty) will constitute one of the key challenges for the nearest future for the majority of enterprises, including obviously Brand24 (and contributing to its transformation from a company offering data into a provider of conclusions and recommendations). In short, Brand24’s strategy regarding AI is to be agile – to create its own solutions where AI-based ones are expensive and to use and integrate them where they are affordable.
